Netflix launches basic with ads

(CNN NEWSOURCE) — Netflix is entering a new era — one with commercial breaks.

Thursday, the streaming service announced the Basic with Ads subscription plan.

This tier costs $6.99 per month in the U.S.

It features much of what is available on Netflix’s basic plan but has about five minutes’ worth of ads an hour.

The spots will be about 30-seconds long each and will air before and during programs.

This is the first time commercials will air in the company’s 25-year history.

Netflix has been struggling financially; subscriptions are down this year and its stock has plummeted.